From PC World: Qualcomm is setting up a server chipset design and sales unit with a provincial government in China, a move that could help boost the company's bid to diversify from mobile chips into the server chips market.
The chip maker will own 45 percent in the joint venture, Guizhou Huaxintong Semi-Conductor Technology, that will be 55 percent owned by the Guizhou provincial government's investment arm. The initial registered capital of the joint venture will be about US$280 million.
Qualcomm revealed plans in October last year to enter the server CPU market that Intel dominates, with a customer processor chip built using the ARM architecture. It said in November that it would co-develop the technology with local Chinese companies.
Like many other U.S. tech companies, Qualcomm appears to want to take advantage of partnerships with local companies for easier access to the Chinese market. Hewlett-Packard sold a majority stake in its server, technology services and storage business in China to a Tsinghua Holdings subsidiary to boost sales of HP's enterprise products in the country, while Intel said in 2014 it was planning to invest in local chip companies for the design of mobile phone chips.
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